40% Faster Onboarding: Digitizing Client Forms with DocuSign

40% Faster Onboarding: Digitizing Client Forms with DocuSign

Executive Summary

Pacific Ridge Wealth, a growing RIA managing over $750 million in assets, struggled with a slow, cumbersome, and error-prone paper-based client onboarding process. By implementing DocuSign for digital signatures and automated form completion, they dramatically streamlined their workflow. The result: a 40% reduction in onboarding time, leading to significant improvements in client satisfaction and a faster path to value for new clients.

The Challenge

Pacific Ridge Wealth experienced significant friction in their client onboarding process, impacting both their operational efficiency and the client experience. Their traditional, paper-based system presented several critical challenges:

• Time-Consuming Paperwork: New clients were inundated with lengthy paper forms requiring manual completion, printing, signing, scanning, and emailing. This process routinely took 7-10 days, delaying the investment process and frustrating new clients eager to begin building their financial future. For high-net-worth clients with complex financial situations requiring multiple accounts and customized investment strategies, the paperwork burden was even more significant.

• High Error Rate: Manual data entry from paper forms into Pacific Ridge's CRM and portfolio management system was prone to errors. These errors could lead to incorrect account setups, misallocated funds, and ultimately, compliance issues. The estimated cost of correcting these errors, including staff time and potential regulatory penalties, was averaging $5,000 per month.

• Compliance Risks: Maintaining accurate and compliant records was a significant concern. Ensuring all required signatures were obtained and that forms were correctly filed was a time-consuming and labor-intensive process. Missing signatures or incomplete forms could expose the firm to regulatory scrutiny and potential fines. With an increasing regulatory landscape, failing an audit would be an issue.

• Lost Productivity: The administrative team spent an estimated 20% of their time chasing clients for missing information or signatures. This diverted their focus from more strategic tasks, such as client communication and relationship building. For a firm aiming to increase their AUM by 15% YOY, their administrative team had to focus on growth instead of chasing paperwork.

• Poor Client Experience: The cumbersome onboarding process created a negative first impression for new clients. In a competitive market, providing a seamless and efficient onboarding experience is crucial for client retention and referrals. Research suggested that 15% of potential clients expressed concern about the lengthy onboarding, which could lead to a loss of $112.5 Million in AUM.

The Approach

To address these challenges, Pacific Ridge Wealth adopted a strategic approach focused on digitizing and automating the client onboarding process using DocuSign. Their methodology comprised the following key steps:

1. Needs Assessment: A comprehensive review of the existing onboarding workflow was conducted to identify pain points, bottlenecks, and areas for improvement. This included gathering feedback from advisors, administrative staff, and a sample group of recent clients.

2. DocuSign Implementation: DocuSign was selected as the preferred e-signature solution based on its robust features, ease of use, and integration capabilities with Pacific Ridge's existing technology infrastructure. A dedicated team was formed to oversee the implementation process, including IT staff, compliance officers, and representatives from the advisory team.

3. Form Digitization: All paper-based onboarding forms were converted into digital templates within DocuSign. This included customizing the forms with Pacific Ridge's branding and incorporating conditional logic to dynamically display relevant fields based on client responses.

4. CRM Integration: DocuSign was seamlessly integrated with Pacific Ridge's CRM system, ensuring that client data was automatically populated into the forms and that completed documents were automatically stored in the client's record. This eliminated the need for manual data entry and reduced the risk of errors.

5. Training and Support: Comprehensive training was provided to all staff members on how to use DocuSign and the new onboarding workflow. Ongoing support was also provided to address any questions or issues that arose.

6. Client Communication: New clients were informed about the benefits of the digital onboarding process and provided with clear instructions on how to complete the forms electronically. A dedicated support line was established to assist clients with any technical difficulties.

7. Continuous Improvement: The onboarding process was continuously monitored and refined based on feedback from staff and clients. This included making adjustments to the form templates, workflow, and training materials.

Technical Implementation

The successful implementation of DocuSign at Pacific Ridge Wealth involved several key technical aspects:

• API Integration: DocuSign's API was leveraged to create a seamless integration with Pacific Ridge's CRM system (Salesforce). This allowed for automated data transfer between the two systems, eliminating manual data entry and ensuring data consistency. The API integration was designed to handle sensitive financial data securely, adhering to industry best practices for data encryption and access control.

• Custom Form Templates: Bespoke DocuSign templates were created for each type of onboarding form, including account opening agreements, risk tolerance questionnaires, and investment policy statements. These templates incorporated conditional logic to dynamically display relevant fields based on the client's profile and investment objectives. For instance, if a client selected "aggressive growth" as their investment objective, the form would automatically display questions related to high-risk investments and diversification strategies.

• Secure Authentication: Multi-factor authentication (MFA) was implemented for all DocuSign users to enhance security and prevent unauthorized access to sensitive client data. Clients were also required to verify their identity through a knowledge-based authentication (KBA) process before accessing and signing the forms.

• Workflow Automation: DocuSign's workflow automation features were used to streamline the routing and approval process. Once a client completed and signed the forms, they were automatically routed to the appropriate advisors and compliance officers for review and approval. Automated email notifications were sent to keep all parties informed of the progress.

• Compliance Archiving: Completed documents were automatically archived in a secure, compliant repository, ensuring that Pacific Ridge Wealth met all regulatory requirements for record keeping. The archiving system was designed to maintain the integrity and authenticity of the documents, with audit trails tracking all access and modifications.

• ROI Calculation Methodology: Pacific Ridge Wealth tracked several key metrics to measure the ROI of the DocuSign implementation. These metrics included the time saved per onboarding process, the reduction in error rates, the improvement in client satisfaction scores, and the cost savings associated with reduced paper consumption and administrative overhead. The ROI was calculated by comparing the before-and-after metrics and quantifying the financial impact of the improvements.

Results & ROI

The implementation of DocuSign yielded significant positive results for Pacific Ridge Wealth, demonstrating a strong return on investment:

• 40% Reduction in Onboarding Time: The average time to onboard a new client decreased from 7-10 days to just 4-6 days. This faster onboarding process allowed advisors to begin managing client assets more quickly, accelerating revenue generation.
• 75% Reduction in Errors: The error rate associated with manual data entry decreased by 75%. This resulted in significant cost savings by reducing the need for error correction and minimizing the risk of compliance issues.
• 25% Increase in Client Satisfaction: Client satisfaction scores, measured through post-onboarding surveys, increased by 25%. Clients reported a more positive and efficient onboarding experience, leading to increased loyalty and referrals.
• Significant Cost Savings: Reduced paper consumption and administrative overhead resulted in annual cost savings of approximately $15,000. This included savings on printing supplies, postage, and staff time.
• Improved Compliance: The automated document management system ensured that all required signatures were obtained and that forms were correctly filed, reducing the risk of compliance violations.
• AUM Growth: A correlation analysis was performed between implementation of the new system and AUM. AUM growth after one year was found to have increased by 5% over previous periods.
• Improved advisor efficiency: Each advisor could onboard 2 more clients per month, increasing revenue by $100,000 per advisor annually.

Key Takeaways

For other RIAs and wealth managers considering digitizing their client onboarding process, here are some key takeaways:

1. Invest in Integration: Seamless integration with your CRM and other core systems is crucial for maximizing the benefits of digital onboarding.
2. Prioritize Client Experience: Design the digital onboarding process with the client in mind, ensuring it is user-friendly and intuitive.
3. Provide Comprehensive Training: Invest in training and support to ensure that all staff members are proficient in using the new system.
4. Focus on Security: Implement robust security measures to protect sensitive client data and comply with regulatory requirements.
5. Continuous Monitoring and Improvement: Regularly monitor the performance of the digital onboarding process and make adjustments as needed to optimize efficiency and client satisfaction.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors uncover hidden opportunities in their client base and personalize investment strategies at scale. Visit our tools to see how we can help your practice.